Australian HR requirements and laws have changed significantly under the current government. While many of these have universal implications, such as directors’ liability for certain breaches, Small Businesses have some protections.
The following is general information. Do not act on this without seeking advice.
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Here are five key areas where Small Businesses have some protections or allowances:
1. PROBATION PERIOD
Technically, FairWork does not define Probation periods – it uses Minimum Employment Period. An employee must complete this period to apply for Unfair Dismissal (note Unlawful Dismissal still applies).
Normally, employees need to be employed for at least 6 months to access the Minimum Employment Period for unfair dismissal.
SMALL BUSINESSES – Employees need to be employed for 12 months before they can apply (Conditions Apply).
(Note: change of business ownership may not reset the employment term)
2. UNFAIR DISMISSAL
SMALL BUSINESS – The Small Business Fair Dismissal Code provides protection against unfair dismissal claims where an employer follows the Code. The Commission will deem a dismissal fair if the employer can provide evidence of this.
Dismissal Processes to Follow
3. REDUNDANCY PAYMENTS
Where there is a genuine redundancy, most employees who have continuous service of more than one year are usually entitled to a redundancy payment.
The redundancy notice period and amount depends on the award or NES. This online calculator is helpful.
SMALL BUSINESS – Most small businesses don’t have to pay redundancy pay under the NES when making an employee redundant. This may not apply if an award or agreement contains an industry-specific redundancy scheme that applies to an employee.
4. CASUAL EMPLOYMENT CONVERSION
New rules about converting Casual employees to Part-Time came into effect on 26 August 2024.
Effectively, casual employees with a firm advance commitment to their work may have options to convert. This is done via a Casual Employment Information Statement at 6 months of employment, 12 months of employment, and every subsequent period of 12 months of employment for casual employees of non-small businesses.
SMALL BUSINESSES have a longer initial period of 12 months of employment instead of 6 months.
5. RIGHT TO DISCONNECT
This law came into effect on 26 August 2024.
SMALL BUSINESSES – comes into effect on 26 August 2025
WHAT IS A SMALL BUSINESS
» Fewer than 15 people
» This is a head count, not total FTE (so if you have 12 full-time and 6 part-time at 10 hours a week you have more than 15)
» Head count Includes Full Time, Part Time and Casual (if they are ‘regular and systematic’)
